| Comment Number: | 522418-08190 |
| Received: | 7/12/2006 1:38:22 PM |
| Organization: | self-employed business woman with Unicity International |
| Commenter: | Eliza Greene |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could harm my business as a Unicity Distributor. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” but some of the sections in the proposed rule will make it very difficult if not impossible for me to sell Unicity products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new Distributors. In my case,this seven-day waiting period is unnecessary, because Unicity already has a 100% buyback policy for new Distributor sales kits. However an additional waiting period would inhibit new business owners and like one slow car in a heavy traffic, it will slow the growth to the economy that home based businesses have provided and will result in a traffic jam. It will also require extensive, unnecessary paperwork, something very burdensome for an independent business owner. Another damaging part of the proposed rule is that which calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was innocent of any wrongdoing. It does not make sense that I would have to disclose these lawsuits unless Unicity is found guilty. Unicity and I are put at an unfair advantage even though Unicity has done nothing wrong. This also gives an unfair advantage to unscupulous litigants who pursue frivolous lawsuits. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to Unicity headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as Distributors: “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met. Direct sales opportunities are fueling growth in our economy. Business opportunities do need to be open and honest, however the proposed rules are overly burdensome and damaging to the free enterprise system. As long as new business owners are protected with full disclosure and buy-back options, no additional burdens should be necessary. Thank you for your consideration, Sincerely, Eliza Greene